Refineries won’t solve Nigeria’s petrol subsidy issue – ex-AMCON boss

A former Managing Director of the Asset Management Corporation of Nigeria, Mr Mustafa Chike-Obi, has said the production of petrol in Nigeria will not the subsidy issue.

Nigeria relies wholly on imports to meet its petrol needs as all its refineries have been shut down since 2020 for repairs. It subsidises the product to keep the pump price uniform across the country.

The surge in the subsidy bill occasioned by the steep rise in crude oil prices has intensified calls for the government to allow market forces to determine the pump price of petrol.

“I am tired of the myth that refineries in Nigeria will make PMS magically cheap and solve the subsidy issue. USA has crude oil and multiple refineries, yet PMS is about 700 naira per litre,” Chike-Obi tweeted on Saturday. “Refineries will not solve the subsidy issue. Only political will and good policies can.”